Acquisition Strategy:
We assisted a large US credit card issuer with targeting and underwriting for new account acquisition through:
- Model score development – effectively identify likelihood of response, approval,
balance maximization, and attrition
- Integrating targeting models – incorporate and optimize the collective effect of
all targeting models
- Prospect segmentation – identify effective offers and treatments specific to each
group of prospects
- Preference modeling – develop offer-based models to identify prospect preferences
and target offers appropriately
- Test plans and feedback loop
Establishing a Loss Forecasting Model:
We have developed and customized a proprietary loss provision model for both US
and UK credit card issuers. The Argus Loss Forecasting Model provides a forward
looking view of consumer credit card performance to accurately predict contractual
and bankruptcy charge-offs.
The Argus LLP Model is a proprietary model based on a Markov Chain approach that
enables credit card risk managers to project loan loss:
- at the portfolio and segment level
- over multiple prediction timeframes
- in dollar amounts, dollar rates, account units, and account unit rates
- that is Basel II compliant
- with high precision
- with simulation capability that incorporates any changes to the portfolio or the
economy
- via a user-friendly desktop interface.
Account Management Retention Program:
With response rates on the decline, a robust retention framework is critical for
enhancing profitability and maintaining portfolio stability. Argus recently worked
with a large US credit card issuer to leverage available account level data (internal,
external and customer interaction data) to estimate balance momentum and life of
balance. These modeled outcomes provided the fundamental framework for aligning
revolvers with one of three specific retention objectives – Monitor, Proactive Retention,
or Reactive Retention
To learn more about these projects and understand how Argus can assist you, please
contact Amit Lal at (914) 307-3183 or
alal@argusinformation.com
